The New York Regional Interconnect said Friday it is suspending plans to build a 190-mile power line in the state, saying a recent decision by federal regulators makes the $2.1 billion project too risky.
The company had asked the Federal Energy Regulatory Commission to reverse a rule established by the region's power grid operator, saying it gave utilities too much power over the project. But the commission denied the request this week, prompting NYRI to suspend operations nearly five years and more than $20 million into the line's development. NYRI is a partnership between privately held American Consumer Industries Inc. and Borealis Infrastructure, which manages the infrastructure investments of Canadian pension plan OMERS.
The FERC decision chills investment by an independent transmission developer at a time when federal officials are trying to expand the nation's electric grid in part to incorporate renewable generation, said Chris Thompson, the company's president.
"It seems like FERC, the Department of Energy, and the Obama administration are not on the same page," Thompson said in an interview Friday.
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